There are many concepts that might be foreign to you when you get started on your Texas bankruptcy filings for your personal business. Perhaps every aspect of the bankruptcy process is fresh to you and, with the help of an attorney, you have gained a better understanding of what you will be facing during this complicated and sometimes difficult time. One concept that might be new to you is known as an ‘automatic stay,’ which applies to all Chapter 7 and 13 bankruptcy business filings.
What is the Automatic Stay?
An automatic stay is one more helpful concept that plays a role in your bankruptcy and giving you a chance to get back on your feet. This is also one of the most important functions that you will find in your bankruptcy case. Upon filing for Chapter 7 or 13, the automatic stay helps “stay” or “freeze” any creditor actions against you. This means that, for that period of time, the calls from creditors will stop and you will be able to breathe again knowing that your bankruptcy is moving forward and you will begin anew in no time.
Here are a few examples of how the stay will work: If you were struggling to keep up with the bills and creditors have threatened that they are about to garnish your wages but have not taken steps to yet do so, filing for bankruptcy will stop them from doing so. If your house was headed toward foreclosure but the process hasn’t begun, the bankruptcy filing would put an end to the foreclosure. If the creditor was about to repossess your vehicle, they would not be able to do so if you filed for bankruptcy first.
As you can see, filing for bankruptcy and the automatic stay that follows it can be one of the most powerful things that you endure in your filings, as creditor actions will completely stop. This means that creditors will no longer be able to harass you about what you owe as you are going through these beginning steps in your case.
Filing for bankruptcy is a difficult time, but many people feel instant relief when they do file and the automatic stay is finally implemented. It gives you time to sit back and think about the proceedings and where your business is headed from here without the constant stress from creditors who only call you to tell you that you could lose your vehicle, your home, or your business.
Of course, if you believe that a creditor violated your automatic stay because they decided to move forward with a repossession or foreclosure even though you filed for bankruptcy first, you have many rights. If a creditor acts in violation of an automatic stay, the creditor could be found in contempt and would be liable for anything that is lost at this time.
Making Right with Your Case: Hiring a Bankruptcy Attorney
If this process sounds appealing after you have been through one of the most difficult times in your life, you will need an experienced business bankruptcy attorney on your side to help in the midst of your Chapter 7 or Chapter 13 filings. At M.J. Watson & Associates, our experienced attorneys have handled a variety of bankruptcy proceedings and would like to help you through this complex and confusing time. You never have to stand alone when you are feeling concerned about the future of your business and personal life and the impact that bankruptcy can have on you. Let us help every step of the way. Please contact us for more information at 817-877-2861.